Hong Kong as an Example-How Location Functions in Business

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Hong Kong As An Example-How Location Functions In Business Xiaofu Liu 1254139 Introduction Location has been the basis of international business as the geographic differences generates the gaps of natural resources, convenience of traffic, the prosperity of the neighbourhood, cost of labour and rent, which implies that geography differentiates economic and business systems between nations(Basil,1989). It functions as a force spinning the wheel of demand and supply because of the inequality of production and resources. Advanced traffic tools and increasingly sophisticated network are accelerating the speed we connect, however, the amplification of location’s importance ensues as well. Inspite of extra costs, Internationalisation enables countries and enterprises to not only obtain what they need but lack or something will consume them much energy and money, but also make profit with the ownership of specific advantages including cheap labor, huge demand market, franchises and cutting-edge technology and assets . As in this essay, I aim to discuss the importance of location where international companies are settled(on both advantageous and disadvantageous sides), and how they(especially transnational companies) survive from the competition in terms of location, I will start with a brief case of Hong Kong and subsequently analylise the factors of those MNEs and countries take advanteges to maxmise their profitability. Why is Hong Kong competitive as the world’s third greatest finantial centres when it extremely lacks natural resourses? HK lies on the southeast of Asia continent. As the biggest junction of the Eurasia and the Pacific, it is blessed with ascendant geographic environment. Backed with mainland of China, facing the ocean, it owns the precondition to connect the globe. Those conditions in a long term stimulate the economic development of HK,
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